On December 3, Gelonghui, Xinda Holdings (08471.HK) issued an announcement about the company's investment in Guangzhou half-city Cloud Information Technology Co., Ltd. ("Guangzhou half-city cloud"). On December 3, 2021, the Company entered into a sale and purchase agreement between Chanda Enterprise Holdings Limited, an indirect wholly-owned subsidiary of the Company, as a seller and Xinhao Technology Company Limited as a purchaser, the Purchaser agreed to purchase 19.23% equity interest in Guangzhou half-City Cloud (equivalent to the Group's entire equity interest in Guangzhou half-City Cloud) at a consideration of HK $6 million.
The sale is subject to the internal restructuring of the Group, in which the Group's stake in Guangzhou Mid-City Cloud will be internally transferred to the newly registered enterprise tools held by the seller before the completion of the sale. Upon completion of the reorganization, the sale is expected to be completed on March 31, 2022. After the completion of the sale, the Group will no longer hold any interest in Guangzhou half City Cloud.